The days of Silicon Valley might just be numbered as Europe is quickly becoming one of the fastest-growing startup ecosystems in the world.
Many venture capital (VC) firms have begun pumping billions of dollars into Europe, with investments steadily growing since the early 2010s.
In this article, we will be reviewing some of the best and most active VCs involved in the European market today, along with their relevant investment portfolio companies and profiles.
Purpose of Venture Capital Funds
Venture Capital firms typically are founded by professionals with startup experience and are usually founders themselves. This makes VCs more appealing to startups seeking investments as VCs have firsthand experience growing an early-stage startup and scaling them to global recognition.
VCs are also less risk-averse compared to institutional or angel investors, with funding coming from corporate investors or Limited Partners such as high net-worth professionals. VC’s portfolios tend to be more diversified, with a flexible range of funding available depending on various criteria to be met by companies seeking funding.
1. Octopus Ventures
Octopus Group Ventures started in 2008 to invest in healthcare, emerging technologies such as FinTech, and consumer sectors. As of the present day, their portfolio includes over a hundred companies, and they have expanded into the energy and real estate markets as well.
Octopus Ventures operates on a philosophy that their investments should contribute a positive impact and leave a lasting change in the world. As such, their investments are centred on a metric of whether or not positive changes can be brought about by a company’s projects.
For early startups still in the seed round, you can expect investments to begin from one million dollars and up to ten million dollars for companies in the venture round.
Furthermore, Octopus Ventures is committed to ensuring that the companies in the portfolio can reach IPO standing as well.
2. Balderton Capital
Balderton Capital has established a firm reputation as a technology investor over the past two decades since its inception.
Over the years, Balderton Capital has managed to work with nearly 200 founders from various European tech companies and has raised nearly three billion dollars for investments in companies.
Balderton Capital takes a long-view approach in their investments: funding typically begins from one to twenty million dollars, with a set long-term plan for companies to follow through with their guidance and mentorship.
With companies such as Revolut, Citymapper, and GoCardless in their portfolio, the successes of Balderton Capital make them one of the leading VCs in Europe today.
3. Notion Capital
Software-as-a-Service and cloud-based computing software have become all the rage in the technology market recently. Notion Capital is a VC that primarily takes on early-stage companies specializing in these technologies, with nearly 60 companies acquired in their portfolio to date.
If you are a fast-growing tech startup company with an annualized revenue of a million dollars or more, you may consider pitching to Notion Capital during your future funding rounds as they may be just the right fit to take your company to greater heights.
Based in the US, Beringea has been investing in startups in the US and Europe for over 25 years and is managing over 50 companies in their portfolio presently.
Beringea’s main pool of funding goes to late-stage and post-revenue startup companies seeking development capital to take their businesses to greater heights. They also seek out companies, typically in the life sciences and e-commerce sectors, with a solid management team and a clear plan to net excess profits for their businesses.
Another VC that centrally invests in tech companies is Anthemis, which is actively seeking out fast-growing companies in the FinTech sector. Anthemis presently has offices in London and New York, but the 50+ companies in their portfolio hail from all around the world.
Anthemis has a dedicated team of FinTech investors who routinely provide support and advice to the companies in their portfolios. They are supported in their ventures by major industry players such as the European Investment Fund and UniCredit, with companies such as True Layer, Currencycloud, and Proportunity under their belt.
6. Force Over Mass
For science nerds, force over mass is known as the equation to derive acceleration for a body in motion. Force Over Mass also happens to be the name of one of the fastest growing VCs primarily making their investments in the city of London.
Force Over Mass specializes in providing investments for B2B companies and centres its investments on companies that are SEIS-qualifying businesses through its EIS Funds.
Along with B2B companies, Force Over Mass has also diversified its portfolio by investing in early-stage startups to encourage greater innovation through competition in the European technology scene.
7. Molten Ventures
Formerly known as Draper Espirit, Molten Ventures is another VC founded in 2006 that primarily invests in tech startups based in Europe who wish to scale their businesses to global heights. Molten Ventures typically seeks out companies in the digital, hardware and electronics, and health and wellness sectors looking to scale their businesses.
Their funds typically range from two to 50 million dollars depending on the company’s standing in their respective growth stages. Molten Ventures currently has over 40 companies in its portfolio, and has produced nearly 30 high-growth companies as well.
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8. Downing Ventures
Downing Ventures is the VC sector of Downing, a firm that primarily provides services in investment management and business finance. Downing Ventures has acquired nearly 50 companies based in London since 2011, with major players such as Hummingbird Technologies and Vivacity Labs in their portfolio.
Downing Ventures seeks out companies in the deeptech, healthcare, and data analytics sectors amongst various others, and provides investments in rounds ranging from 500,000 to five million for companies depending on their growth stage.
If you are a company presently based or founded in London, you may wish to consider seeking out the services and mentorship of Downing Ventures to scale your business to greater heights.
For startups still in their early growth stages, seeking out an appropriate VC for funding and mentorship is a crucial but nerve-wracking task that may seem daunting at first sight. However, with guides such as their readily available, along with VC’s portfolios and success rates posted on their relevant websites or others, it is easier now more than ever to begin your funding journey.